10 Illegal Terms Companies Cannot Negotiate with Employees

1. Retaining the original copies of identification documents, diplomas, and certificates of the employee

Article 20 of the Labor Code 2012 stipulates that when entering into, executing labor contracts, the employer shall not:

- Retain the original copies of identification documents, diplomas, certificates of the employee;- Require the employee to provide financial guarantees or other assets for the performance of the labor contract.

2. Probation period exceeding 60 days

According to Articles 27 and 28 of the Labor Code 2012, the probation period shall depend on the nature and complexity of the job but can only be conducted once for each job and must ensure the following conditions:

- Not exceeding 60 days for jobs with occupational titles requiring intermediate professional, technical skills from college level upwards;- Not exceeding 30 days for jobs with occupational titles requiring intermediate vocational, technical skills, professional secondary education, technical workers, and clerical employees;- Not exceeding 6 working days for other jobs.

The wage during the probation period shall be agreed upon by both parties but must at least be 85% of the wage for that job.

3. Paying wages lower than the regional minimum wage

According to Article 90 of the Labor Code 2012, the wage paid by the employer to the employee for performing the agreed-upon work includes the wage according to the job or title, wage allowances, and other additional amounts.

The employee's wage shall not be lower than the minimum wage prescribed by the Government of Vietnam. Moreover, the law stipulates that employers must ensure equal pay without gender discrimination for employees doing work of equal value.

4. Not paying or incorrectly paying social insurance for employees

In cases where employees fall into one of the mandatory social insurance categories as stipulated in Clauses 1 and 2, Article 2 of the Law on Social Insurance 2014, the employer is responsible for paying social insurance for the employees at the statutory rate.

The rate for social insurance contributions is 21.5% by the employer and 10.5% by the employee, calculated based on the monthly wage for social insurance contributions.

5. Overtime exceeding 04 hours/day

Point b, Clause 2 of Article 106 of the Labor Code 2012 stipulates that the overtime hours for employees shall not exceed 50% of the regular working hours in one day, meaning not more than 04 hours/day.

6. Forcing employees not to work for other companies

Article 21 of the Labor Code 2012 clearly states that employees have the freedom to enter into labor contracts with multiple employers, provided they ensure the full performance of the contents and obligations committed.

Therefore, employers cannot make arrangements with employees to prevent them from working for other companies.

7. Allowing fewer days off than those prescribed

Employees who have worked for a full 12 months for an employer are entitled to annual leave with full pay as per the labor contract:

- 12 working days for those who work in normal conditions;- 14 working days for those who perform heavy, hazardous, dangerous work, or work in areas with harsh living conditions as prescribed by the Ministry of Labor, Invalids and Social Affairs in coordination with the Ministry of Health, or for minors and disabled workers;- 16 working days for those who perform extremely heavy, hazardous, dangerous work, or work in areas with particularly harsh living conditions as prescribed by the Ministry of Labor, Invalids and Social Affairs in coordination with the Ministry of Health.

Additionally, employees are entitled to a total of 10 public holidays with full pay annually. Articles 111 and 115 of the Labor Code 2012 provide detailed regulations on this matter.

8. Agreeing to monetary penalties if the employee violates company rules

This is one of the prohibited actions that employers are not allowed to agree upon with employees as stipulated in Clause 2, Article 128 of the Labor Code 2012. Specifically, employers must not use monetary penalties or wage deductions as a form of labor discipline.

9. Reassigning female employees to different jobs after maternity leave

Female employees are guaranteed to return to their former jobs after their maternity leave; if the former job is no longer available, the employer must arrange another job for them with a wage not lower than the pre-maternity leave wage.

The above content is based on Article 158 of the Labor Code 2012.

10. Requiring employees to postpone marriage or childbirth

Clause 3, Article 155 of the Labor Code 2012 stipulates that employers must not dismiss employees for reasons of marriage or pregnancy. Additionally, Article 116 allows employees to take 03 days of leave with full pay for getting married.

Thus, requiring employees to postpone marriage or childbirth is an unlawful act by the employer.

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